To calculate the monthly amortization payment needed to pay off a loan of $17,000 in 2 years at 12% interest compounded monthly, we can use the formula:
A = P * (r(1+r)^n)/((1+r)^n - 1)
Where:
A = monthly amortization payment
P = principal (loan amount) = $17,000
r = monthly interest rate = 12%/12 = 0.01
n = number of payments = 2 years * 12 months/year = 24
Plugging in the values, we get:
A = 17,000 * (0.01(1+0.01)^24)/((1+0.01)^24 - 1)
A = $802.62
Therefore, the monthly amortization payment needed to pay off the loan of $17,000 in 2 years at 12% interest compounded monthly is $802.62 (rounded to the nearest cent).
